PROPOSED PAYMENT PROCESS UNDER GST – NEW & IMPROVED

Goods and Service Tax - GST - By: - Pradeep Jain - Dated:- 7-11-2015 Last Replied Date:- 8-11-2015 - Introduction- Report of The Joint Committee on Business Processes for GST has already been circulated and views have been sought from people at large for suggesting improvements thereupon. This report is divided into three parts namely GST Registration, GST payment process and GST refund process. In this article, some benefits of the proposed payment process under GST regime have been discussed a .....

nerated by GST network (GSTN) will be accepted, thus, the details therein will be more reliable. The GSTN will provide a unique Id (CPIN) which will be used until payment has actually been received by the bank and CIN (CPIN plus bank code has been generated. Thereafter, the CIN will be used for all the later purposes like accounting, reconciliation, etc. Three payment modes have been prescribed namely online payment through authorized banks, debit cards, credit cards, etc.; over the counter paym .....

here would be nominal errors, therefore, reconciliation process will be easy. E-scroll facility will be provided by RBI which will make the accounting, reconciliation and other ancillary activities easy and effective. The two coloured challan is the special feature of GST payment process. Since only one challan shall be required to pay the taxes namely CGST, IGST, SGST, etc.; two colours have been assigned to the challan for easy demarcation. Proposed payment process: Discussions and Downsides t .....

ter payment (OTC) through authorized banks. Payment through NEFT/RTGS from any bank (including other than authorized banks). Out of the above three, second mode of payment namely over the counter payment will be available for payments upto ₹ 10000/- per challan only. However, the report does not describe whether ₹ 10000/- per challan will be per challan per day or per challan per month or something else. No clarification has been given on the same. It further states that the outstati .....

the safest by the small town people; should be accompanied by facilities instead of restrictions at the beginning of GST era. However, gradually, this mode can be made stringent so as to shift towards automation. The payment through NEFT/RTGS from any bank (including other than authorized banks) is the new mode of remittance to be implemented as from start of GST era. At present no payment can be accepted from any bank other than nationalized bank which has been duly authorized to collect the t .....

by the GST network. Thus, to opt for this mode of payment, the tax payer has to be prompt, otherwise habitual late filer/ user shall be debarred from using this facility. According to RBI, this method was tested in Karnataka and this experience will be further used for developing this mode. It is to be noted that this is the totally new method. Though it has been accepted for the sake of benefit of tax payers, yet, since it is still under testing stage; it will take time to gain popularity. Als .....

s found, tax authorities will directly interact with RBI. Further, in case of RTGS/ NEFT payments through non-authorized bank also, RBI s role will be crucial as it will be the only mediator between the tax payers and Government. Therefore, the role of RBI will increase drastically in the GST era and responsibilities of RBI people will enhance tremendously. In fact, the entire tax collection and remittance procedure will solely depend on the efficiency of RBI personnel. At present, the Central e .....

. This will make the process of accounting bit lengthy and cumbersome. If the location details are there in the challan itself, there is no need of referring the taxpayer s master data every now and then for accounting purpose. The challan correction mechanism has been kept as nominal in the GST regime. Though not completely ruled out, the GST network will allow the tax payers to make corrections in the challan already filed only in very few exceptional cases. Thus, due care shall have to be exe .....